The global pandemic was enough to create uncertainty in the market, without needing to precede inflation levels not seen in 40 years, hikes in interest rates and the whispers of our economy falling into recession. Not to mention a war with Ukraine, sky-high oil prices and supply chain problems that are wreaking havoc all over the world. There are countless more economic factors that might be cause of concern to those who don’t really know the bigger picture. While the world may seem to be losing its marbles, the team at Your Australian Property have good reason to be unworried, and confident that even with the rising inflation caused by economic uncertainty, the flow-on effect to the property market will not hinder you finding your dream property.

What is inflation?

To truly understand how inflation might impact your personal circumstance, you must firstly understand what inflation is. There are many definitions, however the Forbes definition puts it well: Inflation describes the gradual rise in prices and slow decline in purchasing power of your money over time. The RBA states that, “most well-known indicator of inflation is the Consumer Price Index (CPI), which measures the percentage change in the price of a basket of goods and services consumed by households.” When you look at Australia’s CPI over the past 70 years, you’ll find that we have experienced long periods of high inflation, disinflation, and more recently, low and stable inflation. It’s a timely reminder that inflation is normal; it’s not there to be feared nor is it there to be avoided. Inflation is only a problem when the amount of inflation is inappropriate. In other words, hyperinflation. In this instance, the cost of living rises considerably more than salaries and our standard of living goes down.

The Role of the Media and Government

Inflation is still rising, stocks are crashing, property values are going to fall. Sound familiar? These are the headlines we’re seeing flood the media every day. You must remember that these ‘sources’ were the same sources that provided dire warnings in 2020, that bankruptcies, double-digit unemployment and 20% house price falls were on the cards. With good government and central bank policies we were able to mostly avoid these economic outlooks and we predict that this year might play out the same. While we’re not saying inflation won’t rise further, we’re just saying be careful where you read your news!

With the avoidance of economic turmoil in Australia did come various economic outcomes. In 2020 a number of stimulus measures were put in place to prevent us from falling deep into recession and prevent high levels of unemployment. Quantitative Easing was entered into, where interest rates were reduced, the supply of money increased which both drove more lending to consumers and businesses. At the same time, with nowhere to go and nothing to do, Australians saved an unprecedented amount of money. Now that life is relatively normal, we are spending more money at a time where there is a lack of supply of goods around the world. Hence, inflation.

How Long Will We Be Experiencing Inflation?

The RBA expects inflation to reach 7% in the fourth quarter of this year. According to the RBA Governor Philip Lowe, “It’s going to be some years, I think, before inflation’s back in the 2-3% range. But over the next couple of years, it will gradually come down. We don’t see a recession on the horizon.” There are many things on our side, being Australia’s strong economy, good job growth, strong exports and a positive balance of trade. With rising inflation all over the world, Australia is the best place to be.

The Impact on Property

The property market and the economy move in cycles. We are in a period where the market is cooling, and prices are adjusting. In some locations you’ll find property prices correcting while in others you’ll find prices remain stable. Unlike the media has presented, we do not predict the property market to crash. For this to happen, we need to be in the position where homeowners are forced to sell and property prices free fall due to little demand; a scenario more likely when unemployment is high.

The biggest impact inflation will have homeowners, is on recent buyers who might be financially challenged by higher mortgage costs. However, it’s also important to remember that 50% of homeowners have no mortgage at all on their homes, joining those homeowners who are ahead in their mortgage repayments, have money in offset accounts or whose properties already have substantial equity. Furthermore, data from APRA shows approximately 38% of home loans are currently fixed, meaning they won’t be impacted by higher interest rates for some time.

Good News for Long-Term Property Investors So, what does this all really mean? While inflation may seem daunting and concerning to some, to others with a long-term focus it is an excellent opportunity to invest in the property market. Typically, in times like this, inflation has been property’s best friend especially when unemployment is stable. Any decline we see in property values are likely to be short-lived while the world rides out temporary fluxes in the economy. This ‘short term pain’ will be outweighed by the long-term increase in property values, underpinned by an ever-increasing population, increased migration following the pandemic and the general wealth of Australians. Your Australian Property Managing Director and Founder Zac Newbold predicts that when interest rates start to stabilise the real estate market will be quick to bounce back. With inflation sitting around 6.1% and the RBA cash at only 1.35%, it effectively means we have negative interest rates. Ultimately this means the time to buy is now.

Contact Your Australian Property With over 30 years of expert knowledge in the Australian property market, we can help guide you through the sometimes tough and hard to navigate realm of purchasing. If you’re ready to start your journey to home ownership or looking to invest in a new piece of property to add to a growing portfolio, please get in touch.  

Why Use a Buyer's Agent in Melbourne?

Your Australian Property Buyers Agents lives and breathes property and knows the Melbourne Property Market! We at Your Australian Property Buyers Agents offer comprehensive end-to-end support from identifying and analysing your selected properties to dealing with selling agents, attending property inspections, purchase negotiations and / or auction bidding on your behalf. 

Our Independent Buyer’s Agents in Melbourne, will take the time to understand your situation and work out what your individual needs, specific requirements and property goals are, so we can begin searching for your next property. 

To get in touch with us today, please complete our Enquiry Form so we can discuss your objectives and outline our process in clear and simple terms.

What our Clients are Saying about Your Australian Property Buyers Agents

Your Australian Property Buyers Agents is a five-star rated independent boutique Buyer’s Agency in Melbourne. Our success comes from prioritising our clients' unique needs first and consistently delivering exceptional results.​ We promise to be responsive and to truly listen to what our clients need. We're surrounded by noise in the property market – Our goal is to cut through it.

From the CBD to Melbourne’s outer suburbs, Your Australian Property Buyers Agents helps Melbourne home buyers and property investors secure the right property with independent advice, proven strategy and expert negotiation.

We don’t sell property. We don’t answer to developers. We work for you and only you.

With over 30 years of real estate industry expertise, we know what it takes to buy property seamlessly. Patience is key, but never at the compromise of confidence and our clients’ end game. We’re professional in every facet of our work, dealing with our clients with the utmost integrity and honesty.

When clients engage Your Australian Property Buyers Agents, they can expect Buyer’s Agents that are proactive and passionate. Combining a hard work ethic with passion and attention to detail, we help clients achieve their property goals with ease.

Next Step

If you’re Serious about Purchasing the Right Property at the Right Price, then Working with an Expert Buyer’s Agents is the Smartest Purchasing Strategy There Is!

Simply fill out the Enquiry Form below to get Started.

As a Buyer’s Agent, I continually help clients purchase homes. I find time and again that the best properties sell quickly – no matter what the current market. When you’ve finally found the perfect property for you, you need to position yourself so that you can make it yours – but be certain that you’re not over-paying. Below I share some tips to help you with that process. 

1. Looks can be deceiving. A property may look very different in real life to how it looks online. Photoshop takes out most defects such as grubby carpet, washed out paint colour, lack of light and poor finishes making a home look pristine and welcoming which may or may not be the case. A building and pest / strata reports may reveal significant faults or challenges about the property that may influence your decision to purchase.
2. Investigate the property you’ve chosen. It is very important to investigate the property – and the neighbourhood – thoroughly.  Always inspect the property at least twice and bring other people with you to view the home. Then go back to the property at different times of the day, while it may be quiet on a Saturday it may be very different on a weekday or during school pick up hours. Speak to neighbours and ask how they feel about the neighbourhood and if there are any issues.
3. Never make an offer in haste. You should always be very considered regarding whether to make an offer and what the amount will be. At the same time, if you don’t make an offer before someone else does, you may lose out! If you have done your research, examined the market thoroughly, worked out what comparable properties are selling for in the same type of street in the same suburb then you should be able to work out what the home is worth. This is where the services of a Buyer’s Agent can be a great asset.
4. Request a Contract of Sale (known as a Section 32 in Victoria). If you’re interested in purchasing the home and have it reviewed by your conveyancer or property lawyer.
5. Keep your options open. Just because you love this property, doesn’t mean you shouldn’t continue exploring other homes that may also be a good fit for your needs. Especially as you may not be successful buying your first choice.
6. Never overstretch your budget. Your maximum is your maximum.
7. Obtain Finance Pre-Approval prior to starting. Ensure you have finance pre-approved and a deposit before you set out on your search. Knowing you have the funds available to proceed as soon as you find your dream property. Pre-approvals usually have a time limit so you then must up your game and “lose your weekends” to property searches but the security is worthwhile!
8. Engage a conveyancer / property lawyer before you set out and that they will be available to you so that when the right property comes up they are available to review the Contract of Sale for you.
9. Be aware of burn-out. If you have been searching for a long time, you may be inclined to compromise, over-pay or “settle” just so that you can move on with other things in life. A property purchase is expensive – perhaps the most expensive decision you’ll ever make – so the decision to buy needs to be a considered, rational and wise decision.
10. Our Buyer’s Agents represent YOU. Every day, our Buyer’s Agents purchase homes for our clients. We relieve buyers of the burden of searching, inspecting, reviewing, identifying and evaluating properties. We add incalculable value: due diligence, 30 + years’ knowledge and experience, negotiation strategy and purchasing / auction know-how. The average search time with a Buyer’s Agent is generally 60 – 90 days for a home due to the efficiencies we’re able to extract. We have access to Off-Market properties via our wide network of sales agents, ability to “cut to the chase”, and use of our unique Property Buyer Tracker System for clients and detailed Sales Analysis Report.

Buying Real Estate is the Biggest Financial Commitment You are Ever Likely to Make. If You Would Like to Buy the Easy and Stress-Free Way, Contact Me Today, Zac Newbold – Director, Your Australian Property 

Why Use a Buyer's Agent in Melbourne?

Your Australian Property Buyers Agents lives and breathes property and knows the Melbourne Property Market! We at Your Australian Property Buyers Agents offer comprehensive end-to-end support from identifying and analysing your selected properties to dealing with selling agents, attending property inspections, purchase negotiations and / or auction bidding on your behalf. 

Our Independent Buyer’s Agents in Melbourne, will take the time to understand your situation and work out what your individual needs, specific requirements and property goals are, so we can begin searching for your next property. 

To get in touch with us today, please complete our Enquiry Form so we can discuss your objectives and outline our process in clear and simple terms.

What our Clients are Saying about Your Australian Property Buyers Agents

Your Australian Property Buyers Agents is a five-star rated independent boutique Buyer’s Agency in Melbourne. Our success comes from prioritising our clients' unique needs first and consistently delivering exceptional results.​ We promise to be responsive and to truly listen to what our clients need. We're surrounded by noise in the property market – Our goal is to cut through it.

From the CBD to Melbourne’s outer suburbs, Your Australian Property Buyers Agents helps Melbourne home buyers and property investors secure the right property with independent advice, proven strategy and expert negotiation.

We don’t sell property. We don’t answer to developers. We work for you and only you.

With over 30 years of real estate industry expertise, we know what it takes to buy property seamlessly. Patience is key, but never at the compromise of confidence and our clients’ end game. We’re professional in every facet of our work, dealing with our clients with the utmost integrity and honesty.

When clients engage Your Australian Property Buyers Agents, they can expect Buyer’s Agents that are proactive and passionate. Combining a hard work ethic with passion and attention to detail, we help clients achieve their property goals with ease.

Next Step

If you’re Serious about Purchasing the Right Property at the Right Price, then Working with an Expert Buyer’s Agents is the Smartest Purchasing Strategy There Is!

Simply fill out the Enquiry Form below to get Started.